Conference Call 4Q12 Earnings

Transcription

1 Conference Call 4Q12 Earnings 1 1

2 Disclaimer This presentation may include references and statements, planned synergies, estimates, projections of results, and future strategy for Banco do Brasil, it s Associated and Affiliated Companies, and Subsidiaries. Although these references and statements reflect the management s belief, they also involve imprecision and highly difficult risks to be foreseen. Consequently, they may conduct to a different result than those anticipated and discussed here. These expectations are highly dependent on market conditions, on Brazil s economic and banking system performances, as well as on international market conditions. Banco do Brasil is not responsible for bringing up to date any estimate in this presentation. 2

3 Highlights Adjusted Net Income reaches R$ 11.5 billion in 2012 Loan Portfolio¹ grows 24.9% in 12 months NPL 90 ratio (2.05%) remains in decline and lower than Banking Industry (3.64%) Diversified funding sources ensure businesses expansion: highlight to Agribusiness Letters of Credit (LCA) and foreign borrowing (1) It includes private securities and guarantees provided 3

4 Earnings Highlights R$ million 4Q11 3Q12 4Q Chg. % On 4Q11 On 3Q12 On 2011 Operating Revenues 15,924 16,366 17,556 60,649 66, Net Interest Income 10,817 11,251 12,033 40,830 45, Fee Income 5,027 5,280 5,484 18,242 21, Previ ,981 1,355 (45.9) (0.0) (54.5) Other Items¹ (451) (453) (248) (1,404) (1,545) (44.9) (45.1) 10.1 Operating Expenses (10,993) (12,462) (12,510) (41,736) (48,834) Administrative Expense (6,966) (7,123) (7,499) (24,752) (28,194) Legal Risk (4) (463) (219) (860) (1,539) 5,928.6 (52.7) 79.0 Tax Expenses (1,132) (1,113) (1,156) (4,297) (4,451) Allowance for Loan Losses (2,892) (3,764) (3,636) (11,827) (14,651) 25.7 (3.4) 23.9 Non Operating Result 9 60 (4) (147.6) (107.0) 89.4 Income Taxes and Statutory Profit Sharing (1,914) (1,307) (1,861) (7,219) (6,356) (2.8) 42.4 (12.0) Adjusted Net Income 3,025 2,657 3,180 11,751 11, (1.9) (1) It includes Other Operating Revenues net of Other Operating Expenses, Equity in Earnings of Subsidiaries and Affiliates and Insurance, Pension Plans and Premium Bonds Earnings 4

5 Sources and Uses Dec/11 Sep/12 Dec/12 Chg. % R$ billion Balance Share % Balance Share % Balance Share % On Dec/11 On Sep/12 Sources Commercial Funding¹ Total Deposits (0.8) Agrib. LC + Real Estate LC Repos w/ Corporate Bonds , Domestic Onlending Financial and Development Funds Subordinated Debt Others Commercial Papers¹ Domestic Hybrid Debt Capital Instr Foreign Borrowing² Uses Available Funds (19.4) Compulsory Deposits (14.5) (6.3) Net Loan Portfolio (a) + (b) + (c) Loan Portfolio (a) Private Securities (b) Allowance for Loan Losses (c) (19.0) (3.3) (21.3) (3.2) (21.2) (3.1) 11.5 (0.3) Indicators - % Net Loan Portfolio / Total Deposits Net Loan Portfolio / Funding Net Loan Portfolio / Total Deposits (1) It includes Mortgage Bonds, Financial Letters and Debentures (EN 29) (2) It includes Foreign Lending/Onlending, securities abroad, Subordinated Debt Issued Abroad and Hybrid Capital Instruments issued Abroad 5

6 Net Interest Income Net Interest Margin (%)¹ NIM per Segment (%)¹ Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 NIM Risk Adjusted NIM Individuals NIM Loan Operations NIM Companies NIM Agribusiness NIM (1) Annualized Figures R$ million 4Q11 3Q12 4Q12 On 4Q11 Chg. % On 3Q12 Net Interest Income² 10,817 11,251 12, Loan Operations Income 15,971 16,071 16, Funding Expenses (7,200) (6,678) (6,241) (13.3) (6.5) Institutional Funding Expenses (584) (742) (919) Recovery of Write-offs Loans , Treasury Income 2,779 2,639 2,235 (19.6) (15.3) Other (1,000) (852) (441) (55.9) (48.3) (2) Historical data has been reviewed due to changes in the measurement methodology 6

7 Loan Portfolio Broad Concept¹ R$ billion % 19.2% 28.1% % 18.6% 26.3% Offshore Agribusiness Individuals Companies % % Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 (1) It includes private securities and guarantees provided 7

8 Organic Individuals Loan Portfolio¹ ² R$ billion Dec/11 Share % Sep/12 Share % Dec/12 Share % On Dec/11 Chg. % On Sep/12 Payroll Salary Loans (1.0) Auto Loans Mortgage Credit Cards Consumer Finance (0.3) Overdraft (3.7) (12.3) Other Individuals Loan Portfolio (1) Classified Concept (2) Does not include BV operations and acquired portfolios 8

9 Loans to Companies Broad Concept¹ R$ billion Dec/11 Share % Sep/12 Share % Dec/12 Share % Chg. % On Dec/11On Sep/12 Working Capital Investment Trade Finance (16.7) Corporate Bonds & Notes Guarantees (1.3) Other Companies Loan Portoflio (1) It includes private securities and guarantees provided 9

10 Agribusiness Agribusiness Loan Portfolio 1 (R$ billion) NPL 90 (%) Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Companies Individuals Market Share - % (1) It includes private securities and guarantees provided 10

11 Delinquency and Coverage Ratios % NPL 90 Provisions / Non-performing Loans +90 days Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Banking Industry BB Consolidated BB ex Banco Votorantim BB ex Banco Votorantim BB Consolidated Banking Industry 11

12 Agribusiness Companies Individuals Delinquency per Segment¹ % Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 (1) Does not include Banco Votorantim operations NPL15 NPL90 AA C Risk 12

13 Jan/11 Feb/11 Mar/11 Apr/11 May/11 Jun/11 Jul/11 Aug/11 Sep/11 Oct/11 Nov/11 Dec/11 Jan/12 Feb/12 Mar/12 Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12 BV Lightweight Vehicles 1 : Production per Business Channel and Delinquency (1) Comprised of CDC veículos (Autos Consumer Credit) and vans Multi-brand car dealers (R$ billion) Car dealers (R$ billion) NPL 90 (%) 13

14 Banco Votorantim Asset Quality Auto Loans Portfolio Vintage Allowance for Loans Losses Expenses (Autos R$ million) -40.3% -40.6% -33.3% 15% 21% 29% 38% 1,210 1,216 1,082 59% 57% 52% 47% % 22% 19% 15% Mar/12 Jun/12 Sep/12 Dec/12 1Q12 2Q12 3Q12 4Q12 after Sep/11 from Jul/10 to Sep/11 up to Jun/10 NPL + 90 days (%) Allowance for Loans Losses Expenses (consolidated R$ million) , % -25.9% -20.0% 1,438 1,332 1,066 Mar/12 Jun/12 Sep/12 Dec/12 1Q12 2Q12 3Q12 4Q12 14

15 Administrative Expenses R$ million 4Q11 3Q12 4Q Chg. % On 4Q11 On 3Q12 On 2011 Personnel Expenses (3,954) (4,001) (4,211) (13,943) (15,777) Other Administrative Expenses (3,012) (3,122) (3,288) (10,809) (12,417) Telecommunications and Data Processing (556) (543) (574) (2,022) (2,224) Amortization and Depreciation (331) (340) (232) (1,293) (1,271) (30.1) (31.9) (1.7) Security, Guard, and Transport Services (450) (532) (536) (1,622) (2,056) Expenses with Premises and Equipment (448) (471) (517) (1,625) (1,896) Marketing and Public Relations (263) (170) (239) (683) (724) (9.2) Expenses with Outsourced Services (525) (617) (671) (1,974) (2,436) Other Administrative Expenses (439) (449) (520) (1,590) (1,811) Administrative Expenses (6,966) (7,123) (7,499) (24,752) (28,194)

16 Adjusted Administrative Expenses R$ million Chg. % On 2011 Administrative Expenses (24,752) (28,194) 13.9 Banco Patagonia Mapfre Banco Postal Adjusted Administrative Expenses¹ (24,017) (26,449) 10.1 (1) Managerial measurement 16

17 Cost to Income Ratio¹ % Quarterly Ratio 12-months Ratio Q11 1Q12 2Q12 3Q12 4Q12 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 (1) Administrative Expenses / Operating Revenues Information reviewed due to methodology changes. Data from the Income Statement with Reallocations 17

18 BIS Ratio¹ % Tier II Tier I Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 (1) In January/13 Banco do Brasil issued subordinated financial letters in the country (R$ 5.2 billion) and as hybrid instrument of capital abroad (US$ 2.0 billion). Estimates indicates an impact in the BIS Ratio of 128 bps 18

19 2012 Guidance 2012 Guidance 2012 Performance Adjusted Return on Equity 17% - 20% 18.7% Net Interest Income 10% - 14% 12.0% Total Deposits 14% - 18% 6.7% Domestic Loan Portfolio¹ 17% - 21% 23.1% Individuals¹ 19% - 23% 16.3% Companies 18% - 22% 29.5% Agribusiness 13% - 16% 20.7% Allowance for Loan Losses / Loan Portfolio² 3.1% - 3.5% 3.2% Fee Income 13% - 18% 15.5% Administrative Expenses 8% - 12% 13.9% Tax Rate 31% - 34% 27.6% (1) It considers credit acquired with recourse according to CMN 3.533/2008 Resolution (2) 12-month Expenses with Provision for Loan Losses / Average classified Loan Portfolio in the same period 4Q12 Guidance 4Q12 Performance Allowance for Loan Losses R$ billion R$ billion 19

20 2013 Guidance 2013 Guidance Adjusted Return on Equity¹ 14% - 17% Net Interest Income 7% - 10% Commercial Funding² 15% - 19% Domestic Loan Portfolio³ - Broad Concept 16% - 20% Individuals 18% - 22% Companies 16% - 20% Agribusiness 13% - 17% Allowance for Loan Losses⁴ 3.0% - 3.4% Fee Income 10% - 14% Administrative Expenses 7% - 10% (1) Adjusted ROE estimated for 2013 considers estimated shareholders equity, according to current legislation on December 31, 2012 (2) Includes total deposits, Agribusiness Letters of Credit - LCA, Mortgage Bonds - LCI and Repurchase Agreements Operations with Private Securities (3) Domestic Loan Portfolio, in Broad Concept, includes private securities and guarantees (4) Expenses with allowance for loan losses (PCLD) of the last twelve months/average portfolio of the same period 20

21 Contacts Investor Relations Unit SBS - Quadra 1 - Bloco C - Ed. Sede III 7th floor Brasília (DF) Telephone: +55 (61) Fax: +55 (61) bb.com.br/ir ir@bb.com.br 21

22 Appendix 23. One-Off Items 24. Foreign Borrowing 25. Loans to Individuals Broad Concept 26. Individuals Loan Portfolio 27. Individuals Loan Portfolio Average Rates/Tenor 28. Expenses with Provision for Loan Losses 29. Individuals Auto Loan Portfolio - (BB Production) 30. Banco Votorantim Auto Loans Portfolio 31. Loans to Companies Broad Concept 32. Loans to Companies - SME 33. Agribusiness Portfolio by Purpose 34. Agribusiness Portfolio by Credit Line 35. Agribusiness 36. Credit Risk 37. Loans to Individuals Risk Level 38 Loans to Companies Risk Level 39. Renegotiated Loan Portfolio 40. Agribusiness Risk Level 41. Agribusiness Operations with/without rollover 42. Agribusiness Regular and Restructured Transactions 43. Funding 44. Fee Income 45. Actuarial Assets 46. Actuarial Assets 47. Distribution Network 48. Alternative Channels: MaisBB Network 22

23 One-Off Items R$ million 4Q11 3Q12 4Q Adjusted Net Income 3,025 2,657 3,180 11,751 11,528 (+) One-Off Items (53) Sale of Investments Economic Plans (95) (255) (167) (103) (968) Tax Efficiency Reversal of Additional Allowance for Loan Losses Sale of Real Estate - - 1,103-1,103 Tax Eff. and Stat. Profit Sharing on One-Off Items (625) (78) (401) Net Income 2,972 2,728 3,967 12,126 12,205 Adjusted ROAE (%) ROAE (%)

24 Foreign Borrowing % US$ billion Repos Individuals Companies Bond Issues Interbanking Dec/11 Sep/12 Dec/12 24

25 Loans to Individuals Broad Concept¹ R$ billion Dec/11 Share % Sep/12 Share % Dec/12 Share % On Dec/11 Chg. % On Sep/12 Payroll Salary Loans (1.0) Vehicle Finance Mortgage Credit Cards Consumer Finance (0.3) Overdraft (3.7) (12.3) Other Individuals Loan Portfolio (1) It includes guarantees provided 25

26 Individuals Loan Portfolio Loan Portfolio Acquisition R$ billion Dec/11 Share % Sep/12 Share % Dec/12 Share % Chg. % On Dec/11On Sep/12 Payroll loans (13.2) (4.0) Auto financing (10.2) 13.8 Total (11.6) 5.2 Market Share Dec/11 Sep/12 Dec/12 BB Industry Share % BB Industry Share % BB Industry Share % Payroll Loan Mortgage Auto financing Payroll Loan (Organic Credit Portfolio) Dec/11 Share % Sep/12 Share % Dec/12 Share % Chg. % On Dec/11 On Sep/12 Civil Servants 33, , , INSS's Retirees and Pensioners 3, , , Private Sector Employees 2, , ,

27 Individuals Loan Portfolio Average Rates/Tenor Dec/11 Sep/12 Dec/12 Banco do Brasil Auto financing Average rate - % p.m Average term - months Mortgage Average contracted amount - R$ thousand Average term - months Payroll Loans Average rate - % p.m Average term - months BV - Auto Loans Average rate - % p.m Average term - months

28 Expenses with Provision for Loan Losses Guidance 2Q12: R$ 3.6 to 3.8 billion 3Q12: R$ 3.5 to 3.7 billion 4Q12: R$ 3.5 to 3.7 billion Performed R$ billion R$ billion R$ billion R$ million 4Q11 3Q12 4Q12 On 4Q11 Chg. % On 3Q12 Banco do Brasil ex- BV (2,343) (3,098) (3,103) Banco Votorantim (548) (666) (533) (2.8) (20.0) Banco do Brasil Consolidated (2,892) (3,764) (3,636) 25.7 (3.4) 28

29 Individuals Auto Loan Portfolio (BB Production) Portfolio per Risk Level (%) NPL 90 (%) Dec/11 Sep/12 Dec/12 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 D-H AA-C BB Banking Industry Disbursement Profile 3Q12 4Q12 Average Term (months) Average Down-Payment (%) % of the customers are checking account holders for more than five years 47.1% of the customers receive their salaries or pension through Banco do Brasil 29

30 Banco Votorantim Auto Loan Portfolio Average Tenor and Average Down Payment Production Profile % 38% 41% 41% 44% 42% 84% 100% 100% 100% 100% 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 Average down payment Average tenor (months) 60-month tenor with no down payment Other plans NPL 90 after 4 months of granting (%) Coverage Ratio¹ 90 days Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Aug/12 Month of Granting Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 (1) Classified concept 30

31 Loans to Companies Broad Concept¹ R$ billion Loans to Companies Breakdown ¹ Fundo Garantidor de Operações (FGO)³ M 30.7% % M 30.1% Dec/11 Sep/12 Dec/12 Dec/11 Sep/12 Dec/12 Micro and Small Enterprises² Medium and Large Companies (1) It includes private securities and guarantees provided (2) Companies with annual income of up to R$ 25 million (3) Operations Guarantee Fund 31

32 Loans to Companies SME R$ billion Loans per Segment Dec/11 Share % Sep/12 Share % Dec/12 Share % On Dec/11 Chg. % On Sep/12 Manufacturing Industries Commerce Services Segment Total Products Dec/11 Share % Sep/12 Share % Dec/12 Share % On Dec/11 Chg. % On Sep/12 Working Capital Investment Foreign Trade Total

33 Agribusiness Portfolio by Purpose R$ billion Dec/11 Share % Sep/12 Share % Dec/12 Share % Chg. % On Dec/11 On Sep/12 Work. Cap. for Input Purchase Investment Crop Trading Agroindustry Other (33.1) (6.5) Classified Loan Portfolio Rural Product Bills and Guarantees Loan Portfolio - Broad Concept

34 Agribusiness Portfolio by Credit Line R$ billion Dec/11 Share % Sep/12 Share % Dec/12 Share % Chg. % On Dec/11 On Sep/12 Working Capital for Input Purchase (1.0) Trading and Industrialization of Products Pronaf Pronamp FCO Rural BNDES / Finame Rural (12.3) 6.2 Other Classified Loan Portfolio Rural Product Bills and Guarantees Loan Portfolio - Broad Concept

35 Agribusiness 1 Loan Portfolio per Customer Size R$ billion Segment Dec/11 Share % Sep/12 Share % Dec/12 Share % Mini Small Medium and Large Sized Cooperatives Businesses Total Insurance for Working Capital for Input Purchase Operation Contracted Crop 11/12 Share % Crop 12/13 Share % Working Capital for Input Purchase Total Insured With Proagro With Insurance Hedge Price Without Insurance (1) Classified Concept 35

36 Credit Risk Banco do Brasil Brazilian Banking Industry 5.5% 7.6% 94.5% 92.4% D-H AA-C D-H AA-C 36

37 Loans to Individuals 1 Risk Level R$ million Dec/11 Sep/12 Dec/12 Balance Provision Share Balance Provision Share Balance Provision Share AA , , A 26, , , B 55, , , C 18, , , D 2, , , E , F G H 5,098 5, ,318 5, ,288 5, Total 111,569 7, ,564 7, ,056 7, AA-C 101,662 1, ,198 1, ,645 1, D-H 9,907 6, ,365 6, ,412 6, (1) Classified loan portfolio and does not consider Banco Votorantim operations. 37

38 Loans to Companies 1 Risk Level R$ million Dec/11 Sep/12 Dec/12 Balance Provision Share Balance Provision Share Balance Provision Share AA 72, , , A 35, , , B 40, , , C 4, , , D 2, , , E 1, , , F G , , H 2,817 2, ,765 3, ,237 4, Total 160,918 4, ,020 6, ,109 6, AA-C 153, , , D-H 7,769 4, ,836 5, ,087 6, (1) Classified loan portfolio and does not consider Banco Votorantim operations. 38

39 Renegociated Loan Portfolio R$ million BB Consolidated 4Q11 3Q12 4Q12 Credits Renegotiated 5,000 9,775 8,432 Renegotiated overdue Loans Renovated 4,255 9,174 7,699 Credits Renegotiated by Delay - Changes Initial Balance 5,948 6,473 6,862 Contracts Interest Received and Appopriated (222) Write-Off (432) (299) (395) Overdue Renegotiated Loan Portfolio¹ 6,039 6,862 7,266 Allowance for Loan Losses Balance 3,925 4,449 4,553 NPL + 90 days 954 1,095 1,114 Indicators - % All. for Loan Losses / Loan Portfolio NPL + 90 days / Loan Portfolio All. for Loan Losses Balance/NPL + 90 days (1) It Includes the amount of R$ 24,6 million related to renegotiated rural credits as of Dec/2012 (R$22.5 million as of Dec/11) 39

40 Agribusiness 1 Risk Level R$ million Dec/11 Sep/12 Dec/12 Balance Provision Share Balance Provision Share Balance Provision Share AA 19, , , A 16, , , B 39, , , C 7, , , D 2, , , E F G H 1,456 1, ,363 1, ,320 1, Total 88,658 2, ,656 2, ,984 2, AA-C 83, , , D-H 5,388 2, ,317 2, ,092 2, (1) Classified loan portfolio and does not consider Banco Votorantim operations 40

41 Agribusiness Operations with/without Rollover 1 R$ million Risk Sep/12 Dec/12 Portfolio without Rollover Portfolio with Rollover Portfolio without Rollover Portfolio with Rollover Balance All. for Loan Losses NPL 90² Balance All. for Loan Losses NPL 90² Balance All. for Loan Losses NPL 90² Balance All. for Loan Losses NPL 90² AA 19, , A 18, (0) 22, (0) B 45, , , , C 5, , , D 1, , E F G H Total 92,531 1, , ,737 2, , (1) Classified Loan Portfolio (2) NPL at AA level refers to credit with third party risk. The NPL of operations with third party risks were not included in the indicator calculation 41

42 Agribusiness Regular and Reestructured Operations¹ R$ billion Regular Reestructured Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 (1) It includes private securities and guarantees provided 42

43 Funding R$ billion Dec/11 Share % Sep/12 Share % Dec/12 Share % Chg. % On Dec/11On Sep/12 Demand Deposits Saving Deposits Interbank Deposits Time Deposits (1.1) (8.3) Judicial Deposits Money Market Borrowing Agribusiness Letters of Credit Other Comercial Papers Total

44 Fee Income R$ million 4Q11 3Q12 4Q Chg. % On 4Q11 On 3Q12 On 2011 Fee Income 5,027 5,280 5,484 18,242 21, Credit / Debit Cards 1,084 1,189 1,279 3,926 4, Account Fees 1,136 1,081 1,073 4,077 4,356 (5.6) (0.7) 6.9 Asset Management Fees ,197 3, (3.8) 12.0 Loan Fees ,822 2, Collections ,241 1, Billings Interbank Insurance, Pension and Savings Bonds Capital Market Fees Other ,764 2, (1.4)

45 Actuarial Assets R$ million 4Q11 1Q12 2Q12 3Q12 4Q12 (a) Fair Value of the Plan's Assets 133, , , , ,029 (b) Present Value of Actuarial Liabilities (98,850) (98,850) (105,772) (105,772) (128,413) (c) Surplus BB = [(a) + (b)] x 50% 17,115 17,115 13,848 13,848 11,808 (d) Amount Recognized before the Half-Yearly Accouting 13,372 13,870 14,386 14,783 16,249 Actuarial Assets (Initial Period) 12,688 13,372 13,870 14,386 14,783 Antecipated Montly Recognition Contract 97 Contributions ¹ ,178 (e) Unrecognized Amount = (c) - (d) 3,743 3,245 (537) (935) (4,441) (f) Corridor Method - BB ² 6,654 6,654 6,673 6,673 7,601 (g) Excess = (e) - (f) (h) Average Remaining Work Period (half-yearly) (i) Amount Recognized in Half-Yearly Adjustment= (g)/(h) (j) Actuarial Assets (Period End) = (f) + (i) 13,372 13,870 14,386 14,783 16,249 (1) Values do not impact the period income and refer to payments assumed by BB in the Contract 97. So, the balances of the Fundo Paridade and of the Fundo Contribuição were consumed, as shown in Note 27.e. (2) 50% of max value of 10% of Assets or Liabilities (the highest) 45

46 Actuarial Asset Fundo Destinação ("Destination Fund") 4Q11 1Q12 2Q12 3Q12 4Q12 R$ million Initial Balance 4,111 3,684 3,503 3,192 2,853 Update Transfers to Fundo de Contrib. e Fundo de Utiliz. (527) (264) (398) (418) (562) Closing Balance 3,684 3,503 3,192 2,853 2,374 Fundo de Contribuição ("Contribution Fund") 4Q11 1Q12 2Q12 3Q12 4Q12 Initial Balance 1,199 1,096 1, Update Contributions to the Plano 1 (133) (108) (105) (110) (148) Closing Balance 1,096 1, Fundo de Utilização ("Utilization Fund") 4Q11 1Q12 2Q12 3Q12 4Q12 Initial Balance 2,644 3,249 3,592 4,095 4,634 Constitution Update Closing Balance 3,249 3,592 4,095 4,634 5,358 Fundo Paridade ("Parity Fund") 4Q11 1Q12 2Q12 3Q12 4Q12 Initial Balance 1,587 1,608 1,646 1,669 1,715 Contributions to the Plano 1 Contract 97 (20) 0 (21) 0 (17) Update Advanced Amortizing Contribution- Special Group (1,014) Closing Balance 1,608 1,646 1,669 1,

47 Distribution Network Total Distribution Network Branches 5,362 SAA 4,945 Points of Service 8,837 Banking Agents 11,719 Banco Postal 6,195 Shared Distribution Channels¹ 27,134 Total 64,192 (1) Caixa Econômica Federal Lottery Stores, Banco 24h, ATMSs from Banco Regional de Brasília and Caixa Econômica Federal 47

48 Alternative Channels: MaisBB Network + Transactions¹ million Transactioned Volume R$ 7,447 million Credit Operations (quantity) 1,481 thousand Checking Accounts Opened 2,284 thousand Service Points 17,914 (1) Deposits, withdraws, bank statements and account payments Banco do Brasil S.A. Resultado do 4º Trimestre de